COLLEGE STATION INDEPENDENT SCHOOL DISTRICT

BOARD OF TRUSTEES SPECIAL MEETING

Administrative Conference Room

August 30, 2007

12:00 noon

 

               

A.     CALL TO ORDER

President Tim Jones called the meeting to order at 12:10 p.m. with five members present. 

 

B.  DECLARATION OF QUORUM

President Tim Jones, Vice President Mary Broussard, Secretary Randall Pitcock, Trustees Garland Watson and Marc Chaloupka were present.  Trustee Steve Aldrich arrived at 12:11 p.m.  Trustee Charlotte Slack was absent.

 

C.  BUSINESS AND OPERATIONS

C-1.  Receive report on the Investment Strategy and plan for investing proceeds from 2007 Bond sale

Superintendent Eddie Coulson recognized Deputy Superintendent for Business and Operations Mike Ball who reported to the Trustees as it pertains to CSISD’s Investment Strategy and Plan for Investing Proceeds from the 2007 Bond Sale.   The Investment Strategy is significantly impacted by the arbitrage rebate rules wherein the District will not be able to keep earnings on the bond proceeds that exceed the effective interest rate on the bond debt – 4.72 percent.  Any interest earned above that rate must be paid to the IRS.  Additionally, we know that the District will not meet any of the exceptions to the arbitrage rebate rules; therefore, there is no incentive to seek investment returns above the arbitrage rate – 4.72 percent. 

 

The Proposed Investment Strategy for the 2007 bond proceeds is:

a.  To protect the security of the principal

b.  To provide for liquidity when needed

c.  To seek a fixed rate of return as close to the arbitrage rate as possible

 

The Investment Options for the 2007 Bond proceeds are:

a.  Governmental Investment Pool Funds

b.  Individual Securities

c.  Flexible Repurchase Agreement

 

Recommended Firms with which the District would make investment transactions:

a.  Southwest Securities

b.  First Public

c.  First Southwest Asset Management Company

 

Discussion occurred.

 

C-2.  Consideration, discussion, and possible action related to future board meetings related to the 2007 Bond Program

Superintendent Eddie Coulson led a brief discussion regarding the schedule of a Special Board Meeting on September 6th at 6:00 p.m. related to the 2007 Bond Program.

 

C-3.  Consider approval of a list of brokerage firms with which the District would be authorized to make investment transactions

Deputy Superintendent Mike Ball reported that the three firms that are recommended by the District for inclusion on the District’s listing of approved Brokerage Firms are:

a.  Southwest Securities

b.  First Public

c.  First Southwest Asset Management Company

 

The District currently has a business relationship with each of the recommended firms.  All three are reputable and capable firms.  They each have served the District well in their respective roles. 

 

Discussion occurred.  Trustee Steve Aldrich requested a report of detailed investments as it pertains to the Bond proceeds.

 

MOTION 3815:  I move approval of Southwest Securities, First Public, and First Southwest Asset Management Company as firms with which the District would be authorized to make investment transactions, as presented.  The motion was made by Trustee Steve Aldrich and seconded by Trustee Marc Chaloupka.  The motion passed with six ayes and zero nos.  Trustee Charlotte Slack was absent.

 

C-4.  Consideration, discussion, and possible action related to a report on various projects associated with the 2007 Bond Program construction program

Superintendent Eddie Coulson discussed two projects that were identified in the State of the Facilities Study conducted by VLK Architects.  The projects are time-sensitive and are in preparation for the Athletic Facilities construction scheduled to begin immediately at the conclusion of Football season.  The Grounds Maintenance facility and storage needs to be relocated and Replacement of the CS Middle School track, including drainage issues at CSMS.  Discussion occurred.

 

President Tim Jones asked that a standing report at the Regular monthly Board Meetings be a Construction Report.

 

D.  ADJOURNMENT

Without objection, President Jones adjourned the workshop meeting at 1:00 p.m.

 

 

 

                                                                                                                                                           

TIM JONES                                                                RANDALL PITCOCK                  

PRESIDENT                                                              SECRETARY